The Lagos State Internal Revenue Service (LIRS) has taken stringent action by closing down 34 corporate organizations in Lagos for their failure to remit Personal Income Taxes owed by their employees and their non-remittance of Consumption Taxes to the Lagos State Government.
Among the notable companies affected by this enforcement action are NTS Nigeria Ltd., Med-In Hospital & Pharma Services Ltd., Danvic Petroleum Int’l Ltd., Business Intelligence Technology, Avaya Nigeria Ltd., Gladstone Tech Ltd., Courier Plus Services Ltd., Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Limited.
Furthermore, 23 hotels, restaurants, and event facilities were also shuttered for their failure to properly deduct and remit Consumption taxes, thereby impacting the state’s revenue collection efforts.
Seyi Alade, the Director of Legal Services of LIRS, announced a state-wide tax law enforcement operation carried out by the service in Lagos. He highlighted that the tax obligations of the affected companies and hotels collectively amounted to more than N356.12 million.
Alade emphasized, “These companies routinely deduct Personal Income Taxes from their employees’ monthly salaries and levy consumption taxes on the goods and services purchased by their customers. Unfortunately, some unscrupulous businesses withhold these payments, unlawfully diverting the funds for their purposes.”
Alade also warned that the enforcement exercise would persist and target all non-compliant companies, hotels, restaurants, and individuals within the state if they do not promptly rectify their tax positions or adhere to the prevailing regulations in effect within Lagos State. This enforcement effort underscores the commitment of the Lagos State Government to uphold tax compliance and ensure that all entities contribute their fair share to the state’s development and public services.